Perfect board governance is first board meeting discussion and decision making a hot issue due to the high-profile corporate scandals. What is perfect governance? What are the best practices to achieve it?
Clear governance policies that encourage diversity, as well as conducting regular board evaluations are the most effective practices to ensure good governance. Together, they help boards to address governance, risks and compliance (GRC), and deliver the best value to all stakeholders.
It is essential that boards define the unique role of the executive team as well as the board. Then, they can make sure these roles are aligned. They will then be able to avoid having to oversee daily operations. The board should concentrate on the big picture and delegate the management of day-to-day tasks to the executive team.
Another option is to encourage diversity in governance, both on the basis of gender and ethnicity. This will ensure the board has a variety of perspectives to discuss issues and make decisions. It is also important that the board keep up with the most current regulations that affect the governance.
The board should also meet regularly and establish goals and objectives for the company. This will ensure that all decisions are made in a strategic manner. This will also make assessing the effectiveness and progress easier.